Allegion plc
Exchange: NYSESector: IndustrialsIndustry: Security & Protection Services
Allegion plc is a global provider of security products and solutions. The Company offers a portfolio of mechanical and electronic security products across a range of brands. The Company operates in three geographic regions: Americas; Europe, Middle East, India and Africa (EMEIA), and Asia Pacific. As of November 15, 2013, the Company was selling its security products and solutions under 23 brands in 120 countries, including Schlage, Von Duprin, LCN, CISA and Interflex. It sell a range of security products and solutions for end-users in commercial, institutional and residential facilities worldwide, including into the education, healthcare, government, commercial office and single- and multi-family residential markets. In April 2014, the Company acquired Fire & Security Hardware Pty Ltd.
Did you know?
Net income compounded at 8.2% annually over 6 years.
Current Price
$141.06
-2.15%GoodMoat Value
$186.26
32.0% undervaluedProfile
Valuation (TTM)
Market Cap$12.14B
P/E18.85
EV$13.98B
P/B5.87
Shares Out86.03M
P/Sales2.98
Revenue$4.07B
EV/EBITDA13.72
Allegion plc (ALLE) Stock Analysis
GoodMoat Analysis
Allegion plc is a leading provider of security products and solutions, exhibiting a moderate competitive moat and strong profitability. Trading at a P/E of 19.7x with a GoodMoat target price of $186.26, the stock appears favourably priced relative to its estimated intrinsic value.
Read full analysis
Allegion plc operates in the industrials sector, manufacturing and selling security products like locks, door closets, and electronic access systems for homes and businesses. Applying the GoodMoat framework, the company demonstrates a moderate competitive moat, likely scoring well on criteria such as brand strength (e.g., Schlage, Von Duprin), switching costs for integrated systems, and niche dominance in specific security hardware segments. Its financial quality is strong, with an impressive ROE of 31.1% and a solid operating margin of 21.1%, indicating efficient use of capital and pricing power. The 9.3% YoY revenue growth is consistent, and the 5.4% FCF yield is attractive for a value investor. However, a Debt/Equity ratio of 0.96 warrants attention as it approaches the framework's threshold for a less favourable balance sheet. According to the Decision Framework, the business likely passes the Moat & Quality Gate, qualifying for valuation analysis. The GoodMoat target price of $186.26 implies a margin of safety of approximately 26% from the current $147.48 price, which falls into the 'Favourable' band (20–40%) for valuation. This suggests the stock is not deeply undervalued but is priced at a level that offers a reasonable cushion for a quality business. For a value investor, Allegion represents a stable, profitable company in an essential niche, trading at a price that merits further investigation into the durability of its moat and its growth drivers. Analysis based on data as of 2024-05-15.
Market Cap$12.14B
Current Price$141.06
P/E Ratio18.85
Forward P/E—
PEG Ratio5.22
EPS$7.44
Book Value$24.03
P/B Ratio5.87
ALLE Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 8.4% FCF growth (CAGR)
Cash vs Debt
Net Debt: 1.6B
Revenue
2.9B
FY19
2.7B
FY20
2.9B
FY21
3.3B
FY22
3.7B
FY23
3.8B
FY24
4.1B
FY25
Net Income
402M
FY19
314M
FY20
483M
FY21
458M
FY22
540M
FY23
598M
FY24
644M
FY25
ALLE 52-Week Range
$116.92
$179.09
50-Day MA: $157.58200-Day MA: $161.56
Did you know?
ALLE's revenue grew at a 6.1% CAGR over the last 6 years.
Allegion plc (ALLE) Financial Summary
Allegion plc (ALLE) is a Industrials company in the Security & Protection Services industry, listed on NYSE. The stock currently trades at $141.06 with a market capitalization of $12.14B.
Key valuation metrics include a P/E ratio of 18.85, price-to-book ratio of 5.87, and EPS of $7.44. The company reports a profit margin of 15.8% and return on equity of 31.1%.
ALLE Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $12.14B |
| P/E Ratio | 18.85 |
| EPS | $7.44 |
| P/B Ratio | 5.87 |
| P/S Ratio | 2.98 |
| EV/EBITDA | 13.72 |
| Dividend Yield | 1.44% |
| Profit Margin | 15.8% |
| Return on Equity | 31.1% |
| Debt/Equity | 0.96 |
ALLE Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $2.85B | $401.80M |
| FY20 | $2.72B | $314.30M |
| FY21 | $2.87B | $483.00M |
| FY22 | $3.27B | $458.00M |
| FY23 | $3.65B | $540.40M |
| FY24 | $3.77B | $597.50M |
| FY25 | $4.07B | $643.80M |
Allegion plc (ALLE) Valuation
Based on GoodMoat's DCF model, Allegion plc has a fair value estimate of $186.26. At the current price of $141.06, the stock appears 24.3% undervalued relative to our intrinsic value estimate.
ALLE Quality Indicators
Allegion plc maintains a profit margin of 15.8% and an operating margin of 21.1%. Return on equity stands at 31.1%. The current ratio is 1.84. Debt-to-equity ratio is 0.96.
About Allegion plc
Allegion plc is a global provider of security products and solutions. The Company offers a portfolio of mechanical and electronic security products across a range of brands. The Company operates in three geographic regions: Americas; Europe, Middle East, India and Africa (EMEIA), and Asia Pacific. As of November 15, 2013, the Company was selling its security products and solutions under 23 brands in 120 countries, including Schlage, Von Duprin, LCN, CISA and Interflex. It sell a range of security products and solutions for end-users in commercial, institutional and residential facilities worldwide, including into the education, healthcare, government, commercial office and single- and multi-family residential markets. In April 2014, the Company acquired Fire & Security Hardware Pty Ltd.
ALLE Free Cash Flow
Allegion plc generated $685.70M in trailing twelve-month free cash flow, representing an FCF yield of 5.65%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
ALLE Shares Outstanding
Allegion plc has 0.09 billion shares outstanding at a share price of $141.06, giving it a market capitalization of $12.14B.
ALLE Recent Insider Trades
Recent insider transactions at Allegion plc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| MAIN SUE | BUY | 100 | $14726.00 |
| MIZELL STEVEN | SELL | 400 | $65516.00 |